Industrial production grew 0.1 percent month-on-month in July, in contrast to a 0.6 percent fall in June.
Overall output rose 0.1 percent in July month-on-month, the European Union statistics office Eurostat said, following a 0.6 percent drop in June.
Eurostat said investment in capital goods, such as machinery, rose 0.8 percent on the month, the highest rise among the output components. Monthly growth matched economists' expectations.
The production of durable consumer goods rose by 5.7%, intermediate goods by 4.8%, capital goods by 4.3% and energy by 1.2%, while production of non-durable consumer goods fell by 0.5%.
On a yearly basis, growth in industrial output accelerated to 3.2 percent from 2.8 percent in June. Production was forecast to expand 3.3 percent.
If taking into account the findings of the previous year, employment has increased by 1.6% in the euro area (EA19) and by 1.5% in the EU28 in the second quarter of this year.